Attention Pakistani businesses! The Federal Board of Revenue (FBR) has issued a new regulation (SRO 428(I)/2024) mandating online integration with their tax system. This means your Point-of-Sale (POS) system needs to be electronically linked to the FBR for real-time invoice transmission.
Who Needs to Integrate?
This applies to a wide range of businesses, including:
- Hospitality: Hotels, restaurants, event planners
- Transportation: Intercity travel companies, courier & cargo services
- Wellness: Gyms, fitness centers, beauty parlors & clinics (if air-conditioned)
- Healthcare: Private hospitals & medical centers (except low-cost ones)
- Professional Services: Lawyers, chartered accountants, cost & management accountants
- Retail: Most retailers (exceptions for small businesses apply)
- Financial Services: Foreign exchange dealers
- Education: Private schools (with fees exceeding Rs. 1,000 per child per month)
What Does Integration Mean?
Simply put, your billing system needs to be able to generate invoices that automatically send data to the FBR. This ensures real-time transparency in your sales transactions.
How to Integrate?
You’ll need to use a licensed integrator – a company approved by the FBR to handle the integration process. These integrators will install, configure, and maintain the system for your business.
Who Can Be a Licensed Integrator?
Companies with a minimum paid-up capital of Rs. 10 million, experience in system integration, and secure data practices can apply for a license. Membership in relevant IT associations and a clean record with government entities are also crucial.
What are the Responsibilities?
- Licensed Integrators: Setting up and maintaining POS systems, ensuring secure data transmission, and providing technical support to businesses.
- Businesses: Making POS systems available, maintaining smooth operation, reporting system issues to the FBR, and using the integrated system for all invoices.
What Happens for Non-Compliance?
The FBR can take action against non-compliant businesses, including suspension or cancellation of licenses.
Key Takeaways:
- This is a significant step towards a more digitalized tax system in Pakistan.
- Integration improves tax collection and transparency.
- Businesses need to choose a licensed integrator for the process.
- Both businesses and integrators have specific responsibilities.
Stay Compliant, Stay Informed
This SRO signifies a major shift in tax management for Pakistani businesses. Ensure you understand the requirements and consult with a qualified professional to navigate the integration process smoothly.
